Purchase of Property

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 Custodian REIT plc (CREI) 
Purchase of Property 
 
22-Dec-2017 / 07:00 GMT/BST 
Dissemination of a Regulatory Announcement that contains inside information 
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
 
            22 December 2017 
 
      Custodian REIT plc 
 
      ("Custodian REIT" or "the Company") 
 
      Purchase of Property 
 
  Custodian REIT (LSE: CREI), the UK property investment company, is pleased 
            to announce a further purchase of property. 
 
          The Company has acquired St Nicholas Gate Retail Park in Carlisle, 
     comprising six retail warehouse units totalling 73,690 sq ft with a 434 
         parking spaces and the reversionary interest in a 34,750 sq ft Asda 
supermarket. The park is within a mile of the city centre and two miles from 
     the M6, prominently positioned on the busy A6, with occupiers including 
      Asda, Halfords, Oak Furniture Land, Iceland, B&M and Poundland. Nearby 
            retailers include B&Q, Pets at Home, Laura Ashley and Matalan. 
 
  The properties have a weighted average unexpired lease term to first break 
        or expiry of 8.4 years and total passing rent of GBP889,718 per annum, 
            reflecting a net initial yield1 of 6.89%. 
 
    The agreed aggregate purchase price of GBP12.1 million was funded from the 
  Company's existing cash resources, resulting in net gearing2 increasing to 
            21.1 % loan to value. 
 
 Commenting on the acquisition, Richard Shepherd-Cross, Managing Director of 
 Custodian Capital Limited (the Company's discretionary investment manager), 
            said: 
 
      "We are pleased to have acquired these properties in one of Carlisle's 
dominant out-of-town retail locations. The acquisition includes the freehold 
    interest in an Asda supermarket which reverts to the Company in 2038. We 
 expect to witness strong valuation growth in this interest as the headlease 
    shortens. Planning permission has been obtained for two additional units 
            which could drive further valuation growth." 
 
      1 Portfolio passing rent divided by portfolio valuation plus estimated 
            purchaser's costs. 
 
2 Gross borrowings less unrestricted cash divided by last published property 
            portfolio valuation. 
 
      -Ends- 
 
For further information, please contact: 
 
Custodian Capital Limited 
Richard Shepherd-Cross / Nathan         Tel: [phone] 
Imlach / Ian Mattioli MBE 
                                    www.custodiancapital.com [1] 
 
Numis Securities Limited 
Nathan Brown / Hugh Jonathan            Tel: [phone] 
                                               www.numiscorp.com 
 
Camarco 
Ed Gascoigne-Pees                       Tel: [phone] 
                                               www.camarco.co.uk 
 
            Notes to Editors 
 
Custodian REIT plc is a UK real estate investment trust, which listed on the 
    main market of the London Stock Exchange on 26 March 2014. Its portfolio 
    comprises properties predominantly let to institutional grade tenants on 
long leases throughout the UK and is principally characterised by properties 
             with individual values of less than GBP10 million at acquisition. 
 
        The Company offers investors the opportunity to access a diversified 
      portfolio of UK commercial real estate through a closed-ended fund. By 
targeting sub GBP10 million lot size, regional properties, the Company intends 
  to provide investors with an attractive level of income with the potential 
            for capital growth. 
 
    Custodian Capital Limited is the discretionary investment manager of the 
            Company. 
 
            For more information visit www.custodianreit.com [2] and 
            www.custodiancapital.com [1]. 
 
ISIN:           GB00BJFLFT45 
Category Code:  MSCM 
TIDM:           CREI 
OAM Categories: 3.1. Additional regulated information required to be 
                disclosed under the laws of a Member State 
Sequence No.:   5044 
 
End of Announcement EQS News Service 
 
641335 22-Dec-2017 
 
 
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2: http://public-cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=44eae66ce326b2005a19503bbab5faed&application_id=641335&site_id=vwd_london&application_name=news 
 

(END) Dow Jones Newswires

December 22, 2017 02:04 ET (07:04 GMT)